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Dec 31, 2022
Sphere Entertainment Co Q2 2023 Earnings Report
MSG Entertainment posted strong Q2 FY2023 results with double-digit revenue growth and significant operating income gains.
Key Takeaways
MSG Entertainment reported Q2 FY2023 revenue of $642.2 million, up 24% year-over-year, driven by strong performances in its Entertainment and Tao Group Hospitality segments. Operating income more than doubled, and adjusted operating income rose 63%, reflecting robust holiday season events and increased sponsorships.
Revenue grew 24% year-over-year to $642.2 million.
Operating income increased 109% to $74.0 million.
Adjusted operating income rose 63% to $124.1 million.
Entertainment segment revenue jumped 44%, driven by the Christmas Spectacular and higher event-related revenues.
Revenue by Segment
Forward Guidance
The company anticipates completing the spin-off of its live entertainment business by March 2023 and expects MSG Sphere in Las Vegas to open in September 2023, positioning it for long-term growth.
Positive Outlook
- Spin-off of live entertainment business expected to close by March 2023.
- Opening of MSG Sphere in Las Vegas set for September 2023.
- Continued strong demand for live events.
- Positive momentum in sports bookings and sponsorships.
- Expansion of Tao Group Hospitality's global footprint.
Challenges Ahead
- Decline in MSG Networks revenue due to lower subscribers.
- Higher operating expenses in Entertainment and Tao segments.
- Increased professional fees related to spin-off costs.
- Higher employee compensation costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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